The Benefits and Costs of Solar Distributed Generation for Arizona Public Service

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This report provides a new cost-benefit analysis of the impacts of solar distributed generation (DG) on ratepayers in the service territory of Arizona Public Service (APS). The study shows that distributed solar generation (DG) and net energy metering will provide Arizona Public Service (APS) customers with $34 million in benefits each year. Using data from APS’ 2012 Integrated Resource Plan and other APS data, the study examines the costs incurred and the benefits generated by distributed solar over the useful life of a distributed solar system. The study also finds that for each dollar of cost, DG provides $1.54 worth of benefits to APS customers. The net benefits for APS customers will amount to $34 million per year beginning in 2015. Benefits include savings on expensive and polluting conventional power and power plants; reduced investments in transmission and distribution infrastructure; reduced electricity lost during transportation over power lines, as distributed solar power is generated and consumed locally; and savings on the cost of meeting renewable energy requirements.

The study was commissioned by SEIA and was authored by Tom Beach of Crossborder Energy.